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Nifty has tapped the liquidity pool which would have been sitting under the swing low and has been now moving up.
The next turning point could be ~11,300 to 11,400 (from where many short sellers may decide to enter the).
If it manages to stay above 11,400, It can go even higher, or else it may just tap into the retail Stop-Loss liquidity pool and turn down again.
The shows a good amount of resistance up ahead till the highlighted zone. Post that zone, there should be comparatively less resistance till another swing.
I N T R A D A Y - P E R S P E C T I V E
Please note, if you are thinking of playing this on the short side, have a small quantity and wide SL since the market may penetrate deeper that you expected (because of a short squeeze).
I would be looking forward to a retrace from the zone (with confirmation).
Please note: These are my views and not trading advice. Please consult your financial adviser before making any trading decision.
“I know where I’m getting out before I get in.” - Bruce Kovner
Nifty moved into the expected territory to take SLs which will provide sell-side liquidity.
The up move had comparatively less volume showing weaker participation on the upside move (see image above).
Let's see where it heads now.